China's securities regulator is investigating a former mutual fund manager from Shenzhen-based Bosera Asset Managment, who allegedly involved in what we called "rat trading". It is the largest rat-trading scandal in China's mutual fund sector. The Shenzhen Stock Exchange has also found connections between the suspect and two stock trading accounts, which held over 1-billion yuan. Let us take a closer look.

Ma Le served as Bosera Select Equity Investment Fund manager for almost two years from April 2011 to June 2013. Through regular audits at the Shenzhen Stock Exchange, officials uncovered shares held by two personal trading accounts linked to those held by Ma, An account avlued at 1-billion-yuan. Ma allegedly used insider information through the convenience provided by his job at Bosera, amd profited from a rise in share price following large stock transactions. An unnamed source from Bosera told China Business Network that Ma had already resigned from his position ahead of the investigations. 

A staff in the marketing department, Bosera Asset Management Co said:

Ma Le has already resigned in June
from our fund for personal reasons
and we have no additional details
regarding his situation at this moment
We are not currently under investigation

Rat trading has been a problem plaguing the development of the securities market and investment fund sector in the Chinese Mainland. Offenders involved are liable to prison terms of up to ten years. To address the problem, securities regulators stipulate a new criminal act to stop illicit gains by fund managers. An investment director at Bank of Communications Schroder Fund Managment was convicted in Shanghai last year, and sentenced to four years in prison for rat trading. 

Gloria Ai for China Business Network in Shanghai